- Ethereum rebounded 5% after dropping to $2,110 amid heightened geopolitical tensions involving the U.S., Iran, and Israel, sparking a surge in volatility and investor selling.
- Despite $750 million in realized gains and losses, exchange outflows and continued ETF inflows signal growing dip-buying interest and potential for recovery.
Ethereum Finds Strength Amid Geopolitical Storm
Ethereum (ETH) is showing early signs of recovery after a volatile weekend driven by escalating tensions between Israel, Iran, and now the United States. As reports emerged of Iran launching missiles at a U.S. military base in Qatar—following U.S. strikes on Iranian nuclear sites—ETH briefly dipped to $2,110 before rebounding nearly 5% on Monday.
This support level coincides with the 100-day Simple Moving Average (SMA) and the lower boundary of a broader symmetrical triangle—crucial technical zones that have historically cushioned Ethereum’s price during sell-offs.
Volatility Soars, Short-Term Holders Exit
Market sentiment remains fragile. Long traders were hit hardest, with nearly $600 million in liquidations since Friday. In the same timeframe, Ethereum holders booked $750 million in realized profits and losses, signaling panic selling, mostly from short-term investors. This trend is evident in the declining Mean Coin Age across 90- and 180-day cohorts, a sign of widespread distribution.
Adding to the unease, Ethereum’s 7-day implied volatility (IV) surged by 15 points to 83%, according to Derive’s Sean Dawson. “Volatility markets are telling us this isn’t over,” Dawson warned, pointing to continued uncertainty and risk-off sentiment.
Spot Buyers Step In, ETFs Show Confidence
Despite the turbulence, long-term investors are gradually returning. ETH has seen three consecutive days of exchange net outflows, totaling nearly 110,000 ETH, as dip buyers accumulate at current levels. Meanwhile, U.S. spot Ethereum ETFs continue to show resilience, recording $124 million in inflows for a ninth straight week.
ETH Price Forecast: Key Levels to Watch
If ETH can break above the upper boundary of its descending channel, a move to $2,500 is likely, with $2,850 as a stretch target. However, failure to hold the $2,110 support could see the price fall to $1,800.
Technical indicators like the RSI and Stochastic Oscillator are climbing from oversold levels, suggesting bearish pressure may be easing. But with geopolitical risks far from resolved, traders should brace for further volatility ahead.
